The Moderating Effect of Transaction Experience on the Decision Calculus in On-Line Repurchase
- 1 September 2007
- journal article
- Published by Taylor & Francis Ltd in International Journal of Electronic Commerce
- Vol. 12 (1), 127-158
- https://doi.org/10.2753/jec1086-4415120105
Abstract
Repeat customers are five times more profitable than new customers. Internet vendors have to retain customers to reap the benefits of repeat sales, but more than 50 percent of repeat customers seldom complete a third purchase. One reason is the inability of on-line vendors to manage customers' changing expectations. Vendors need to understand the decision calculus of repeat customers at every stage of their transaction experience with the vendor. This study uses a customer repurchase decision-making model to examine the effect of transaction experience on customers' decision calculus in on-line repurchases. The model shows that the effects of perceived convenience and perceived price change over the transaction experience, whereas the effects of perceived value and pleasure do not. These findings have significant theoretical and practical implications.Keywords
This publication has 66 references indexed in Scilit:
- Developing the Commitment to Virtual CommunityInformation Resources Management Journal, 2007
- Internet Privacy Concerns and Social Awareness as Determinants of Intention to TransactInternational Journal of Electronic Commerce, 2005
- Literature derived reference models for the adoption of online shoppingInformation & Management, 2005
- Consumer acceptance of virtual storesACM SIGMIS Database: the DATABASE for Advances in Information Systems, 2004
- Value across fulfillment‐product categories of Internet shoppingManaging Service Quality: An International Journal, 2004
- Inexperience and experience with online stores: The importance of tam and trustIEEE Transactions on Engineering Management, 2003
- Understanding Information Systems Continuance: An Expectation-Confirmation ModelMIS Quarterly, 2001
- Nature and Operation of AttitudesAnnual Review of Psychology, 2001
- On risk, convenience, and Internet shopping behaviorCommunications of the ACM, 2000
- Beyond discrete biases: Functional and dysfunctional aspects of judgmental heuristics.Psychological Bulletin, 1981